Luxury aircraft tax

AN ACT Relating to reducing the impact of the luxury aircraft 1
tax; amending RCW 82.32.145; repealing RCW 82.48A.010, 82.48A.020, 2
82.48A.030, and 82.48A.040; and declaring an emergency.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.32.145 and 2025 c 417 s 205 are each amended to 5
read as follows: 6
(1) Whenever the department has issued a warrant under RCW 7
82.32.210 for the collection of unpaid trust fund taxes from a 8
limited liability business entity and that business entity has been 9
terminated, dissolved, or abandoned, or is insolvent, the department 10
may pursue collection of the entity's unpaid trust fund taxes, 11
including penalties and interest on those taxes, against any or all 12
of the responsible individuals. For purposes of this subsection, 13
"insolvent" means the condition that results when the sum of the 14
entity's debts exceeds the fair market value of its assets. The 15
department may presume that an entity is insolvent if the entity 16
refuses to disclose to the department the nature of its assets and 17
liabilities. 18
(2) Personal liability under this section may be imposed for 19
state and local trust fund taxes. 20
H-2446.2
HOUSE BILL 2347
State of Washington 69th Legislature 2026 Regular Session
By Representatives Dent, Barkis, and Richards
Prefiled 01/08/26. Read first time 01/12/26. Referred to Committee
on Transportation.
p. 1 HB 2347
(3)(a) For a responsible individual who is the current or a 1
former chief executive or chief financial officer, liability under 2
this section applies regardless of fault or whether the individual 3
was or should have been aware of the unpaid trust fund tax liability 4
of the limited liability business entity. 5
(b) For any other responsible individual, liability under this 6
section applies only if he or she willfully fails to pay or to cause 7
to be paid to the department the trust fund taxes due from the 8
limited liability business entity. 9
(4)(a) Except as provided in this subsection (4)(a), a 10
responsible individual who is the current or a former chief executive 11
or chief financial officer is liable under this section only for 12
trust fund tax liability accrued during the period that he or she was 13
the chief executive or chief financial officer. However, if the 14
responsible individual had the responsibility or duty to remit 15
payment of the limited liability business entity's trust fund taxes 16
to the department during any period of time that the person was not 17
the chief executive or chief financial officer, that individual is 18
also liable for trust fund tax liability that became due during the 19
period that he or she had the duty to remit payment of the limited 20
liability business entity's taxes to the department but was not the 21
chief executive or chief financial officer. 22
(b) All other responsible individuals are liable under this 23
section only for trust fund tax liability that became due during the 24
period he or she had the responsibility or duty to remit payment of 25
the limited liability business entity's taxes to the department.26
(5) Persons described in subsection (3)(b) of this section are 27
exempt from liability under this section in situations where 28
nonpayment of the limited liability business entity's trust fund 29
taxes is due to reasons beyond their control as determined by the 30
department by rule. 31
(6) Any person having been issued a notice of assessment under 32
this section is entitled to the appeal procedures under RCW 33
82.32.160, 82.32.170, 82.32.180, 82.32.190, and 82.32.200.34
(7) This section does not relieve the limited liability business 35
entity of its trust fund tax liability or otherwise impair other tax 36
collection remedies afforded by law. 37
(8) Collection authority and procedures prescribed in this 38
chapter apply to collections under this section. 39
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(9) The definitions in this subsection apply throughout this 1
section unless the context clearly requires otherwise.2
(a) "Chief executive" means: The president of a corporation; or 3
for other entities or organizations other than corporations or if the 4
corporation does not have a president as one of its officers, the 5
highest ranking executive manager or administrator in charge of the 6
management of the company or organization. 7
(b) "Chief financial officer" means: The treasurer of a 8
corporation; or for entities or organizations other than corporations 9
or if a corporation does not have a treasurer as one of its officers, 10
the highest senior manager who is responsible for overseeing the 11
financial activities of the entire company or organization.12
(c) "Limited liability business entity" means a type of business 13
entity that generally shields its owners from personal liability for 14
the debts, obligations, and liabilities of the entity, or a business 15
entity that is managed or owned in whole or in part by an entity that 16
generally shields its owners from personal liability for the debts, 17
obligations, and liabilities of the entity. Limited liability 18
business entities include corporations, limited liability companies, 19
limited liability partnerships, trusts, general partnerships and 20
joint ventures in which one or more of the partners or parties are 21
also limited liability business entities, and limited partnerships in 22
which one or more of the general partners are also limited liability 23
business entities. 24
(d) "Manager" has the same meaning as in RCW 25.15.006.25
(e) "Member" has the same meaning as in RCW 25.15.006, except 26
that the term only includes members of member-managed limited 27
liability companies. 28
(f) "Officer" means any officer or assistant officer of a 29
corporation, including the president, vice president, secretary, and 30
treasurer. 31
(g)(i) "Responsible individual" includes any current or former 32
officer, manager, member, partner, or trustee of a limited liability 33
business entity with an unpaid tax warrant issued by the department.34
(ii) "Responsible individual" also includes any current or former 35
employee or other individual, but only if the individual had the 36
responsibility or duty to remit payment of the limited liability 37
business entity's unpaid trust fund tax liability reflected in a tax 38
warrant issued by the department. 39
p. 3 HB 2347
(iii) Whenever any taxpayer has one or more limited liability 1
business entities as a member, manager, or partner, "responsible 2
individual" also includes any current and former officers, members, 3
or managers of the limited liability business entity or entities or 4
of any other limited liability business entity involved directly in 5
the management of the taxpayer. For purposes of this subsection 6
(9)(g)(iii), "taxpayer" means a limited liability business entity 7
with an unpaid tax warrant issued against it by the department.8
(h) "Trust fund taxes" means taxes collected from purchasers and 9
held in trust under RCW 82.08.050, including taxes imposed under RCW 10
82.08.020, 82.08.150, 82.08.817, 82.12.818, ((82.48A.010, 11
82.48A.020,)) and 82.51.010. 12
(i) "Willfully fails to pay or to cause to be paid" means that 13
the failure was the result of an intentional, conscious, and 14
voluntary course of action. 15
NEW SECTION. Sec. 2. The following acts or parts of acts are 16
each repealed:17
(1) RCW 82.48A.010 (Luxury aircraft tax) and 2025 c 417 s 207;18
(2) RCW 82.48A.020 (Use tax if value of aircraft exceeds $500,00019
— Exception) and 2025 c 417 s 208; 20
(3) RCW 82.48A.030 (Deposit for revenue collected) and 2025 c 417 21
s 209; and 22
(4) RCW 82.48A.040 (Administration) and 2025 c 417 s 210.23
NEW SECTION. Sec. 3. This act is necessary for the immediate 24
preservation of the public peace, health, or safety, or support of 25
the state government and its existing public institutions, and takes 26
effect immediately.27
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